Employee Reward System And Motivation Business Essay

Although it seems to be easy to pull off people public presentations at work when you know their abilities and KSA`s, It can ever be hard when you really drop into the existent clip scenario. This is because each undertaking, competences and cognition is different from the other person in a work topographic point and moreover any persons public presentation is non unvarying all over his/her calling. The degree of public presentations is dependent of several factors such as emphasis, co-workers, household, hours of work, vacations, and acknowledgment for work etc.

So Lashkar-e-Taiba ‘s see public presentation in footings of acknowledgment given to the employees for the attempts they put in. So, any single requires some of sort of acknowledgment or wages based on their work to actuate them and execute good.

We will write a custom essay sample on
Employee Reward System And Motivation Business Essay
or any similar topic only for you
Order now

Reward Systems: Harmonizing to Aguinis ( 2008 ) this is a set of mechanisms for administering both touchable and intangible returns as portion of an employment relationship.

When we consider the functions of wages system in pull offing public presentations of the staff in an administration, it ever tend be both positive and negative. The chief motivation of the wages system is to actuate people and honor them for service to the administration anticipating equal consequences from their public presentations that finally act upon the overall organisation`s public presentation.

Armstrong ( 2002 ) says that the HR forces concerned with reward direction may pass much of their clip doing usage of the bing wages procedures but harmonizing to him the most of import and ambitious undertaking is to continuously better it and orient it harmonizing to the schemes of the organisation. That means utilizing the bing wages policies does non do equal benefits to the company but the manner you manage the so bing policies harmonizing to current state of affairs is what is required from the HR specializers. He besides adds that if the Business scheme alterations so the HR scheme must alter and honor system must alter consequently.

Administrations need a wages direction system that is strategic for staff and satisfies four chief countries: compensation, benefits, recognition and grasp. The reverse alongside this in many companies presents is double i.e. They are missing at least one of the above elements ( by and large recognition and/or grasp ) , and the countries that are focussed are n’t clearly aligned with company ‘s other schemes.

A successful company has to recognize and honor two chief types of its employee activity public presentation and behavior. Of two former one is the easiest to place as you are merely delegating undertakings and judging on the results. It is like honoring the top 10 gross revenues winners in a given clip.

Second being honoring based on behavior is really disputing the other as it is hard to measure the behavior and wages. It is like taking between individual`s invention or the sum of clip they ‘re sitting at a desk. There ‘s clearly a important difference between two activities.

When companies think about the wages direction, they tend to set compensation on top list. The right scheme has to ever incorporate a compensation program that clearly links to the aims of the company for that peculiar clip. Longer term wagess can be offered to some cardinal forces. This frequently includes a signifier of equity ownership.

Companies that do n’t transcend the compensation degrees provided by their rivals face have troubles in retaining cardinal forces.

Anyhow the significance of acknowledgment and grasp as cardinal elements of successful strategic wages system can non be disregarded. These two seldom acquire attending they are supposed to but this is astonishing as they are the low cost/high return ingredients. All workers in a company would be acute to cognize if they are making good or bad, so it is really utile to do them aware of their public presentation.

Recognition of an person for their specific ends achieved and for their actions shown is called acknowledgment. While grasp means demoing gratitude to person for their actions. Expressing acknowledgment combined with grasp in the signifier of thanks in forepart of all the staff by mentioning illustrations of their actions that deserved grasp.

Employee Reward system and Motivation:

Motivation of employees has been in pattern and proved to be working for the administrations which started from 1930`s ( Lee-Ross, 2002 ) . It is defined as the procedure of satisfying internal demands of single through different actions and behaviours. It pertains on the complexness of mental and physical thrusts, articulation with the environment which makes the people perform the manner they do ( Lee-Ross, 2002, 55 ) . Motivation is force that pushes the person to move.

So, without proper motive at work topographic point the employee`s part to the productiveness remains limited and therefore overall public presentation of the company is affected. Employees possess the KSA`s required to accomplish the demands of the company but they should be after all willing to lend to the company`s growing. High motive degrees lead to higher degrees of work committedness and this in bend consequences in high public presentation of the company ( permagon Flexible Learning, 2005 ) . Motivation can be through fiscal and/or Non-Financial offers from the employers. Both are proven effectual to actuate people. Finally assisting in keeping their trueness and retain them.

Reward system contains all constituents of administration, that includes people, procedures, regulations and processs, together with the decision-making activities, which involved the the procedure in apportioning compensation and benefits to employees, in exchange for their part to the organisation ( Griffin and Moorhead, 2009 ) .

As mentioned earlier the primary aim of wagess is to pull, actuate, and retain employees. This helps to achieve the equality of wagess offered to the employees, which are chiefly relied on their public presentation and parts to the company ( Griffin and Moorhead, 2009 ) .

Common types of wagess to pull and retain qualified employees include basal wage, fringe benefits and awards, public presentation assessment, indirect compensation, bonuses etc. ( Griffin and Moorhead, 2009 ) . One most of import thing that requires employers ‘ attending is though fiscal wagess serve as the primary tools to pull valuable person, it is ever the non-financial wagess that helps to retain valuable employees. This might be due to the fact that the non-financial wagess ever point towards the emotional and psychological wellbeing of the staff. For illustration, supplying flexible hours to the senior forces. Womans during needed clip will be really helpful.

Furthermore, the wages system helps the administration to enter the single public presentations of the employees and therefore their accomplishments and parts towards the company are recorded really often. So persons work at their best as they are cognizant of the monitoring mechanism of the company, in footings of public presentation is connected to the wages system. In other words, they are motivated to work at their best degrees in order to keep their degree of public presentation and carbon monoxide relate to the criterions expected from the company. In add-on to the above, the wages system helps to keep utile competition within the organisation.

A survey suggests that fillips and other fiscal benefits no longer act upon the organisation`s long term ends but this may be non wholly true in every state of affairs. Harmonizing to many experts, an appropriate wages system in topographic point is a must for every administration and HR forces must orient that wages system to suit assorted sections of an administration and expeditiously match it to the work force.

Performance and wagess

Belfield and Marsden ( 2003 ) discovered, as analyzing the information of the 1998 Workplace Operative Relations Survey led in England, forceful facts that the usage of public presentation related wage increases the public presentation consequences, even though this connexion is affected by the building of workplace monitoring environments.

But, harmonizing to Yao ( 1997 ) worked on the effects of net income sharing and fillips on the public presentation of Chinese province industries and stated that more than half of the value-added development of these industries might be due fillip payments.

Incentives Vs. Consequences

Hollowell ( 2005 ) , looking at the connexion of high-incentive-based official pay contracts with the long-run stable public presentation discovered that houses that have a robust official compensation component show commensurate superior long-run stock-price public presentation. Finally, Lazear and Oyer ( 2009 ) late gave an overview of effects of inducements in organisations. They went through many surveies that conveyed that inducements can be a really important managerial instrument for changing persons ‘ behavior in a utile manner. Specifically, productiveness can be increased using inducements like piece rates. Yet, Lazear and Oyer ( 2009 ) to boot debated surveies that displayed that even nevertheless inducements worked, in the sense that they had a affirmatory consequence on consequences, they did non ever work systematically and from clip to clip even had unwilled and unwanted consequences.

Performance and public presentation assessment based wages system

Performance-related wagess permit the highest performing artist to be awarded consequently. Harmonizing to Lyons and Ben-Ora ( 2002 ) , successful performance-based wagess are those, absolutely get down, implemented and aligned with entire wages scheme. When organisations construction the “ reward systems ” wholly harmonizing to the purpose of their employees, it happens to human inherent aptitude to work hard in order to accomplish their ain and organisational aims ( Pfau and Kay, 2002 ) . Among several cardinal constituent of wage for public presentation “ stock ” is reckoned most pertinent and mensurable manner to associate wage to public presentation. The lone manner to heighten the Employees motive and enthusiasm is public presentation assessment system particularly when attempts straight link with wages through peculiar and formalistic single aims ( Fay and Thompson, 2001 ) . Seniority, internal equity, public presentation based incentive programs and traditional wages are extremely ranked in Chinese civilization. Brown ( 2008 ) suggested that measuring, estimating and developing the efficaciousness of human resource wage and compensation patterns have cardinal prospective for the company in a service or knowledge based economic system.

Pay and inducements linked to long-run public presentation.

When features of high acting companies are focussed, Kling ( 1995 ) discovered that relating/linking staff pay and inducements to long term accomplishments of the overall administration had a utile relationship with the productiveness. Although these findings from the plants done old ages ago, in some companies it still remains the same standards. While in 2011, Weller and Reidenbach say that, in the event of the recession and economic recovery, a critical balance between the inducements for the shorter footings and long tally public presentation has to be achieved as presently corporate directors have strong inducements to accomplish short term ends than to put on long tally productive techniques. As the research of Weller and Reidenbach is comparatively new, this is current in many administrations in today ‘s market. Many directors are assigned inducements based on monthly targeted gross revenues and productiveness.

Most significantly Bebchuk and Fried ( 2010 ) pointed out that it is the same issue in instance of public sectors every bit good.

Reward systems that reinforce nucleus values and scheme:

In 1996, harmonizing to Montemayor, High executing US companies used different types of wage policies where these were ever aligned with the overall corporate scheme, while the low acting companies were characterised by the deficiency of tantrum among concern scheme and pay policies. Best houses invented and implemented wages system that reinforces the nucleus values and mission of that house. ( Lawler, 2003 )

Wagess based on comparative public presentation:

Sometimes wagess are based on comparative public presentation versus rivals. Other signifier of comparative public presentation is put frontward by Guojin et Al. ( 2011 ) , which is honoring individual`s public presentation after comparing it with others public presentations in the same activity.

Group compensation:

During the clip of revising the emerging concern constructs developed by the best houses to cover with increasing competitory environment, Hammer ( 2001 ) , discovered that these developed houses adopted wages system that focussed on group public presentation over each single public presentation. Harmonizing to me, this is extremely agreeable as many of the successful companies manage to cover competition and achieved high productiveness rates through its wage programs. However, Jennings ( 2002 ) found all these company`s pay programs were based on group productivity-based compensation, which drove and strengthened the civilization which in bend increased productiveness.

Wage for public presentation.

Harmonizing to Bae and Lawler ( 2000 ) Korean companies that employed high engagement human resource direction ( HRM ) scheme achieved better results than others which did non follow this type of HRM. The same consequences were discovered by Challis et Al. ( 2005 ) and Knight – Turvey ( 2005 ) for Australian houses, Kok and Hartog ( 2006 ) for Dutch concerns, chiang ( 2006 ) for south Korean houses, and Origo ( 2009 ) for Italian makers. US houses used eight direction techniques among which wage for public presentation is one. These findings are apparent among American concerns.

I was working at Microsoft India and have an experience of about two old ages. I was working as a client service representative. I enjoyed working for Microsoft and program to set up a better calling in the same administration.

Overview of Microsoft India:

Our company, Microsoft is organized and established. The major concern countries are functioning clients get downing from consumers to corporations. Individual but connected, every individual concern entirely determines its ain net incomes and additions

Microsoft Corporation India Private Limited ( MCIPL ) is the selling arm for Microsoft ‘s merchandises in India, set up in 1990. MCIPL has grown to over 685 employees, across offices in the nine metropoliss of Ahmedabad, Bangalore, Chennai, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi and Pune. We look at the gross revenues and selling for endeavor, little and mid-market group and consumer sections, via a strong channel web of over 18,000 members, including over 550 ISVs.A

Working for Microsoft:

Working Experience for Employees at Microsoft

Working in Microsoft brings in a batch of alone experiences, along with a honoring calling chance. The company believes in the potency of each person and their future potency to do anything possible. So, apart from a high academic record, the company besides looks for persons who are exceptionally talented and have a passion to accomplish the impossible. With its 6 concern units in India, you can happen a occupation best suited to your cognition and accomplishments, which include merchandise development, researching, supplying concern support and marketing the merchandises. This company is surely a alone one and with regular preparation and public presentation benefits helps a individual to make his or her calling ends. Microsoft India serves as the perfect platform for larning new engineerings, research the best solutions, and get cognition about emerging market trends.Benefits play an of import function in our pick of employer. Microsoft believes that work should be disputing, yet honoring. It ‘s critical to supply industry-leading benefits to all qualified employees. Get downing with a competitory wage, fillips, and stock bundle benefits, Microsoft continues to honor eligible employees based on their single public presentation. Anyway these benefits do non halt at any degree.

Microsoft purposes to authorise its employees with the resources, compensations, flexibleness and occupation security and guaranting its employees live a healthy and balanced life.

It is widely known that, Microsoft is recognised as a prima administration for supplying the strongest and the most comprehensive inducements and benefits bundle in India. As mentioned earlier, Microsoft employees start off with competitory rewards, fillips and stock awards based on single public presentation degrees.

The chief country of difference in Microsoft benefit bundles in India is that it non offers flexibleness in working conditions but besides the flexibleness in benefit bundles. So, It is like employees can take the mix of benefits that best suits them. This is in my position a great and really ambitious attack because each employee has alone benefit demands and to run into that Microsoft offers flexible benefits.

Health and Wellness:

It offers comprehensive and flexible health care for its employees and their qualified dependents. It besides provides dental and oculus attention coverage, onsite medical cheques, wellness nine rank reimbursement etc.

Family and rearing

Employee households enjoy a broad scope of benefits such as pregnancy leave, paid clip off for new mas and pas, and reimbursement of creche fees etc.


provides an employee stock purchase plan where they could buy discounted portions of Microsoft stock.

Giving together:

One more singular attack is that they match the sum that employees contribute to community personal businesss like charities and educational establishments up to 50, 000 INR per employee/ twelvemonth and contribute to causes. It is another manner where Microsoft makes a important difference.

Learning and development:

It ever believes in changeless acquisition so the staff can possess really current KSA`s. It offers over 2000 internal preparation plans which may either online, virtually, or via category room preparation. It invests a batch of sum on employee preparation and development.

Measuring my old employer ‘s wages system based on the literature standards done:

Harmonizing to Griffin and Moorhead ( 2009 ) common types of wagess to pull and retain qualified employees include basal wage, fringe benefits and awards, public presentation assessment, indirect compensation, bonuses etc. Microsoft offers the employees more than all the above types of wagess so this can be considered as one of the footing for its success or endurance.

Reward system at my old employer, Microsoft India:

Performance and wagess

It believes in wagess harmonizing to the degree of public presentation because it offers broad assortment of benefits to the top performing artists. These top performing artists is chiefly measured based on their invention at Microsoft as the whole administration runs on the constructs based on engineering invention methods. It besides focuses on the employee working term of office as it offers wage rises depending on the figure of old ages they worked for the company.

This could be understood clearly by the below tabular array obtained from Indian resourcing consultancy called naukri hub

Median wage based on old ages of experience:


Median Salary/ Annum

1 twelvemonth or less

Rs 700,000

1 to 4 old ages

Rs 840,000

5 to 9 old ages

Rs 1,005,815

10 to 19 old ages

Rs 1,508,368

More than 20 old ages

Rs 4,800,000

A ( naukrihub.com, 2012 )

Microsoft employee wages vary depending on the part of the state or metropolis they live in. This is fundamentally because of the fact that the cost of populating varies in India depending upon which metropolis or province you live in. To understand, tabular arraies below can be observed:

Average Microsoft wages in India harmonizing to Cities:

The average wages for Microsoft employees in India harmonizing to the assorted metropoliss have been mentioned below:

Name of the metropolis

Median Salary

Mumbai, Maharashtra

Rs 2,075,000

Bangalore, Karnataka

Rs 868,646

Hyderabad, Andhra Pradesh

Rs 1,071,823

New Delhi, Delhi

Rs 1,500,000

Gurgaon, haryana

Rs 1,400,000

Pune, Maharashtra

Rs 500,505

A ( naukrihub.com, 2012 )

Median Microsoft Salaries harmonizing to States:

The average wages for Microsoft employees in India harmonizing to the different provinces have been listed below:

Name of the State

Median Salary


Rs 1,238,973

Andhra Pradesh

Rs 1,062,408


Rs 875,709


Rs 1,775,000


Rs 1,160,000

Tamil Nadu

Rs 170,000

( naukrihub.com, 2012 )

Competency Based Pay:

It follows a wage and wages system that is partially dependent upon the educational competences and Qualification as it offers varied pay degrees depending on the aboce standards.

Salary Range by degree of academic making:

Salary scope of Microsoft employees harmonizing to the degrees of academic makings have been given below:

Academic Qualification

Salary Scope

Bachelor ‘s Degree

Rs 370,000 to Rs 2,164,207

Bachelor of Engineering ( B.E. )

Rs 1,002,500 to Rs 1,581,000

Bachelor of Technology ( B.Tech )

Rs 166,107 to Rs 2,483,233

MBA ( Master of Business Administration )

Rs 610,419 to Rs 1,965,270

A ( naukrihub.com, 2012 )

Skill based Wage:

It relies on its employees ‘ accomplishments and it gives different salary bundles to persons based on their accomplishments and country of competency. It is sometimes interrelated with competence based wage and hence can non be much differentiated. Different degree forces are paid different wage bundles like many other administrations. For case based on their appellations this can be considered:

Salary scope for other Designations –


Pay Scale

Support Engineer

Rs 792,143 per twelvemonth

Software Development Engineer II

Rs 1,320,000 per twelvemonth

Program Manager

Rs 1,600,000 per twelvemonth

Program Manager II

Rs 1,710,000 per twelvemonth

Test Lead II

Rs 1,150,000 per twelvemonth

Associate Consultant

Rs 966,667 per twelvemonth

Support Engineer II

Rs 870,000 per twelvemonth


Rs 38,157 per month

( naukrihub.com, 2012 )

Group Wagess:

As it is an IT house it consists of several sections and group undertakings. So the awards are often given to the eligible squads, However there will be a group leader or a section caput who indirectly receives excess recognition among the squad.

For case in the 2nd half of the twelvemonth I was working on a undertaking on one of the top hotel ironss of India and we as a squad were given a deadline of 3 hebdomads. All the persons in the squad were assigned a specific occupation and everyone worked difficult and someway managed to finish our several undertakings in 2 hebdomads and presented the concluding presentation in less than the clip allotted to us. At the terminal of the twelvemonth our group was awarded best group performing artist award. This rises the motive degrees of all the members of the group but the squad leader who part was less compared to the squad members was awarded the best performer award. This can sometimes hold a negative consequence on the remainder of the group members.

Transparent and just Appraisal:

As the employees of the company every staff member has the right to cognize his/ her part to the growth/ public presentation of the company. Microsoft has a just and crystalline attack in its public presentation rating and at that place by guarantee just assessment is established. It provides an on-line portal demoing elaborate information about each person ‘s public presentation over certain period of clip. In this portal, it gives a clear image of how many undertakings were undertaken by each employee, how many of them completed on clip and how many earlier deadlines, informations about fiscal addition through assorted undertakings, promptness of employees, what countries needed to be improved by the forces, feedbacks, what type of wagess are available etc. So when employees know what is expected from them by the company there is better opportunity for them to vie and work hard to derive the wagess and atleast better their public presentation to following degrees.

Net income sharing:

This is more related to higher forces and selling staff. The selling and resourcing groups of the company are given inducements and net income sharing benefits based on the gross revenues they attain and clients they procure from the market. It is similar to some retail markets where directors have to make certain gross revenues marks and they will be eligible to increase their fillips based on the gross revenues and net incomes they bring to the company.

Annual ball sum fiscal wagess:

This is more of rewarded to most of the full clip employees at my work topographic point where they are deposited with some ball sum payment depending on assorted facets like their experience at the company etc. More or less, this type of honoring besides plays a critical function in geting and retaining people.

Contributions of wagess in the HR direction at Microsoft:

Reward system play a critical function in Human resource section of any company and it is the same in Microsoft every bit good. Analysts opined that Microsoft is mostly successful due to its effectual employee keeping schemes. After the planetary recession crisis there was an increased duty on the shoulders of HR forces. HR direction has to be highly strong and efficient to retain the top employees by supplying better compensation and benefit bundles.

Harmonizing to Joe Wilcox ( 2000 ) one of the company ‘s representatives, Microsoft is invariably researching ways to guarantee the compensation degrees are competitory and do certain that the staff are non merely recognised for their work but are suitably rewarded. Harmonizing to Ian, General Manager at Windowss presentation foundation, Microsoft, “ It ‘s been new functions, new rubrics, new challenges every twelvemonth or so. I stopped seting my rubric on my concern cards old ages ago as it was acquiring outdated so often ”

Microsoft has been supplying stock options at price reduction to employees since 1986, when it was listed on the stock exchange. ( Barnali Chakraborty, 2010 )

Wagess like reimbursement of tuition fee for its employees to derive entree to work related classs is one of the alone attacks brought up by Microsoft and is every bit benefits the strategic HR direction as it boosts the staff ‘s involvement to larn more and execute more which is finally good to the overall company public presentation.

Better the wagess direction, better will be the employees ‘ motive degrees to execute more and therefore Strategic HR is ensured and thereby the administration ‘s overall scheme.

Therefore Microsoft Corporation received several awards and acknowledgments and few among are:

2008 # 1 Best Companies to Work for in India – Business Today

2008 # 1 Most Preferable Employers in the Top 50 India Engineering Colleges – Economic Times/AC Nielsen

2007 America ‘s Most Admired Companies, Fortune

2009 # 1 Great Places to Work for in Ireland ( Microsoft awards and acknowledgment )


Hi there, would you like to get such a paper? How about receiving a customized one? Check it out